Tether Holdings Limited Record Profits of $700 Million in Q4 2022

Tether Holdings Limited record profits of $700 million in Q4 2022, with $960 million in excess reserves and $67 billion in consolidated total assets. Despite the bear market wiping out the cryptocurrency space, Tether’s profits still increased significantly. The firm also reduced its secured loans by $300 million and revealed that 58% of its holdings are invested in US Treasury Bills.

Paolo Ardoino, Tether’s Chief Technology Officer, stated that it proves their commitment to transparency in the industry. He emphasized their stability and resilience against turbulent market conditions in 2022, which saw numerous bankruptcies and black swan events. Furthermore, Ardoino noted that they had executed over 21 billion dollars in redemptions and issued at least 10 billion USDT throughout the year – evidence of growth and adoption.

Some believe a potential crash of Tether could spell disaster for the entire crypto sphere. Dogecoin’s Co-Creator Shibetoshi Nakamoto and Twitter’s former CEO Jack Dorsey have both raised this prospect before. At the end of 2022, The Wall Street Journal reported on how Tether had been lending out coins instead of exchanging them for hard currency upfront – raising questions about liquidity issues for the company.

However, Tether quickly refuted this conjecture by citing their overcollateralized loans (which are even backed by additional equity if necessary). It also announced plans to reduce its secured loans to zero by the end of 2023.

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